Liberal Coalition in Legislature Ignores Business Community

May 8, 2010-- After a historic four day budget debate, considering more than fifty amendments to restore funding to protect our state’s most vulnerable without a tax increase, the Kansas House of Representatives voted to instead pass an unbalanced budget full of misplaced priorities. 

The House’s liberal coalition budget leaves more than a $300 million funding gap while expending taxpayer dollars on government luxuries like national conference memberships instead of programs which aid the disabled, DNA crime labs and more.  Similarly, the Kansas Senate passed an unbalanced budget paired with a $300 million tax package that hits the entire spectrum of our economy – from employers, their employees and the unemployed.  The nearly 19% increase in the statewide sales tax amounts to the largest in Kansas history.

“As of today, the legislature has failed to address the needs and wishes of the business community.  It has instead catered to the needs of those at the government trough. The Kansas legislature has turned a deaf ear to the hard-working businessmen and women who have made the decision to invest in Kansas and provide jobs for our citizens.” Instead of responsibly funding state government without raising taxes, a coalition of liberal House and Senate members have instead chosen to slash crucial services and push for a historic tax hike on Kansas families,” said Kansas Chamber President Kent Beisner.

Added Kansas Chamber Chairman of the Board Mike Maddox: “The business community understands both the difficulty and the impact of cutting spending.  The vast majority of businesses in Kansas have been forced to cut spending; many a greater percentage than what is required of the state at this time.   Likewise, businesses cannot succeed in a down economy by increasing prices, yet that is exactly what the Kansas Legislature is doing.  Already our state government has become unaffordable for Kansans and yet the veto session has extended into a third week of pushing through policies that spend even more money from our pockets.”

“Raising taxes to fill the funding gap is bad enough, but growing the deficit by adding another $200m in new spending even as higher taxes are piled onto the shoulders of Kansans is irresponsible and illogical.  We cannot tax and spend our way into economic recovery, a fact realized by the majority of states which have not raised taxes during the current recession.”

The budget crisis can still be solved by cutting spending and without a tax increase.  The Kansas House has not yet concurred with the Senate tax package and has considered proposals which increase funding for education, social services and public safety without requiring additional taxes. Once again, we find ourselves held captive by a group of legislators with little to no business experience and virtually no understanding of basic economics.

Kent Beisner reiterated the position of the Chamber: “On behalf of the business community, we urge continued resistance to poor policies which will bankrupt Kansas families and businesses just as they have the state coffers. We appreciate those Legislators who are standing up for Kansas taxpayers.  In the coming weeks we will be working tirelessly to expose those who voted to impose higher taxes on job creators and families.”

Beisner concluded, “The Kansas Legislature is wasting a historic opportunity for economic growth and increased competitiveness.  Concurring with the House Budget and Senate Tax package will grow the State’s spending problem while drawing vital dollars out of the economy which create desperately needed jobs for Kansas workers.   Growing government will shrink our economy and prolong this recession and our state’s recovery.” 

The Kansas Chamber is the leading business advocacy organization, representing businesses of every size throughout our state, employing more than 100,000 Kansans.

The Kansas Chamber, with headquarters in Topeka, is the leading statewide pro-business advocacy group moving Kansas towards becoming the best state in America to live and work. The Chamber represents small, medium and large employers all across Kansas. For more information on the Kansas Chamber of Commerce, go to www.kansaschamber.org.